Northern District of Illinois

CHICAGO — A suburban Chicago diagnostics company that provides home sleep testing will pay $3.5 million to the United States to settle a civil lawsuit accusing the company of defrauding Medicare and four other federal health care programs through kickbacks and unnecessary home sleep testing.

The suit in U.S. District Court in Chicago alleged that SNAP DIAGNOSTICS LLC, a nationwide provider of home sleep testing diagnostic services based in Wheeling, Ill.; its founder, GIL RAVIV; and its vice president, STEPHEN BURTON, violated the False Claims Act and the Anti-Kickback Statute by fraudulently billing Medicare and four other federal health care programs for medically unnecessary services and for services that were occasioned by kickbacks.   The suit alleged that Raviv directed SNAP to submit claims for patients’ second and third nights of home sleep testing when, in fact, the company knew that only a single night of testing was needed to effectively diagnose obstructive sleep apnea and that it routinely tested and claimed only one night for patients with private health insurance.  As a result, the suit alleged that, in addition to defrauding five federal agencies, SNAP unlawfully multiplied the copays it received from senior citizens who were Medicare beneficiaries.  The suit also alleged that SNAP’s business model relied on several unlawful kickback schemes, which incentivized physicians and their staffs to refer all of their home sleep testing services to SNAP.

As part of a settlement agreement approved Friday by U.S. District Judge Mary M. Rowland, SNAP agreed to pay the United States $3.5 million, while Raviv will pay $300,000, and Burton $125,000, for a total settlement amount of $3.925 million.    These payments represent amounts the United States is willing to accept due solely to SNAP’s, Raviv’s, and Burton’s respective financial conditions, as shown by sworn financial disclosures.  SNAP and Raviv also entered into a corporate integrity agreement with the Office of Inspector General of the U.S. Department of Health and Human Services, requiring SNAP to, among other things, retain an independent review organization to perform annual reviews of claims and submit reports to the OIG-HHS.

The settlement was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Cynthia A. Bruce, Special Agent-in-Charge of the U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Southeast Field Office; Gregory Billingsley, Special Agent-in-Charge of the U.S. Department of Veterans Affairs Office of Inspector General’s Central Field Office; Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Martin J. Dickman, Inspector General of the U.S. Railroad Retirement Board Office of the Inspector General in Chicago; and Amy K. Parker, Special Agent-in-Charge of the U.S. Office of Personnel Management Office of the Inspector General.  The government was represented by Senior Litigation Counsel Sarah J. North and Assistant U.S. Attorney Kate Flannery.

“When health care providers violate their obligation to properly bill for federally funded treatment, government programs and American taxpayers pay the price,” said U.S. Attorney Lausch.  “Our office remains committed to protecting taxpayers and preserving the integrity of our federal health care system.”

“American taxpayers should never foot the bill for private companies seeking to profit by defrauding government programs,” said FBI Special Agent-in-Charge Buie.  “The FBI will continue working with law enforcement and prosecutorial partners to fight illegal kickback schemes and ensure that justice is done within the federal medical system.”

“We aggressively investigate cases of fraud, which take money from VA programs meant to benefit our nation’s veterans and their families,” said VA OIG Special Agent-in-Charge Billingsley.  “The VA OIG thanks the U.S. Attorney’s Office and our law enforcement partners for their efforts in this joint investigation.  We encourage anyone who becomes aware of fraud against the VA to contact the VA OIG Hotline.”

“We are proud to be part of this collaborative effort and would like to thank our law enforcement partners and the U.S. Attorney’s Office for their dedication and excellent work in this case,” said RRB-OIG Inspector General Dickman.  “Medicare fraud remains a top federal law enforcement priority and providers who exploit our healthcare system will not be tolerated.”

“The OPM OIG is committed to holding accountable those who seek to enrich themselves by inflating costs and overbilling the Federal Employees Health Benefits Program for medically unnecessary tests,” said OPM OIG Special Agent-in-Charge Parker.  “We applaud our investigative staff and law enforcement partners on today’s settlement, which is a direct result of their hard work investigating these types of health care fraud schemes.”

“Individuals involved in this scheme defrauded TRICARE and I am pleased that the U.S. Attorney’s Office is requiring justice,” said DCIS Special Agent-in-Charge Bruce.  “DCIS agents will continue to pursue individuals who improperly profit from our military health care system and all taxpayers.”

The settlement resolves two civil lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act.  The Act permits private citizens to bring lawsuits on behalf of the United States for false claims, and to share in any recovery.  The United States intervened in the two lawsuits and filed a complaint in intervention prior to the settlement.  The settlement agreement is neither an admission of liability by SNAP, Raviv, or Burton, nor a concession by the United States that its claims are not well founded.

CHICAGO — A man has been sentenced to seven and a half years in federal prison for illegally possessing a loaded semiautomatic handgun and crack cocaine on a Chicago sidewalk.

ANDRE WILLIAMS illegally possessed the gun and drugs on the afternoon of May 6, 2020, on a sidewalk in the West Englewood neighborhood on Chicago’s South Side.  Chicago Police officers responding to a call of suspected criminal activity in the area approached Williams and asked to speak to him.  Williams ran off and led the officers on a two-block foot chase before they apprehended him.  The officers seized the gun, which was loaded with nine rounds of ammunition, and multiple bags of crack cocaine from a pocket of Williams’s sweatshirt.

Williams, 43, of Chicago, pleaded guilty last year to a federal charge of illegal possession of a firearm.  Williams had previously been convicted of multiple state felonies, including a firearm offense, and was prohibited by federal law from possessing the gun.

U.S. District Judge Jorge L. Alonso imposed the 90-month sentence Friday after a hearing in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; and David Brown, Superintendent of the Chicago Police Department.

“Defendant and other felons who carry guns must understand that illegally possessing weapons on the streets of Chicago translates to real consequences and real punishment, including meaningful time in prison,” Assistant U.S. Attorney Misty N. Wright argued in the government’s sentencing memorandum.

Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy.  In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.

CHICAGO — A federal grand jury in Chicago has charged 23 defendants with participating in a fraud scheme through which they allegedly swindled ten life insurance carriers out of at least $26 million in fraudulent benefits.

The defendants submitted fraudulent applications to obtain life insurance policies in the names of various individuals and then induced the carriers to pay death benefits by knowingly misrepresenting the identity of a different deceased person as the insured, according to an indictment unsealed today in U.S. District Court in Chicago.  The fraud scheme charged in the indictment began in 2013 and continued until last month.  Among the defendants are sets of spouses and, in some cases, their children, as well as an insurance agent who owned a side business that performed medical examinations on applicants for term life insurance policies.  The indictment seeks forfeiture from the defendants of at least $26 million in alleged ill-gotten gains, as well as nine luxury automobiles, eight Rolex watches, and properties in the Chicago suburbs of Orland Park, Bridgeview, and Burbank.

The indictment charges the 23 defendants with multiple counts of wire and mail fraud.  Most of the defendants were arrested Thursday in Illinois and Florida and will be making initial appearances in federal courts in Chicago, Orlando, Tampa, and Miami.

The indictment and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Nicholas A. Pecora, Jr., Chief of the Arlington Heights, Ill., Police Department.  Valuable assistance was provided by the Cook County State’s Attorney’s Office, U.S. Marshals Service, and United States Attorney’s Offices for the Middle and Southern Districts of Florida.  The government is represented by Assistant U.S. Attorneys Philip N. Fluhr and Andréa L. Campbell.

“The fraud scheme charged in the indictment involved an elaborate deception perpetrated against multiple insurance companies for the purpose of financial gain,” said U.S. Attorney Lausch.  “I commend the FBI Chicago Field Office and the Arlington Heights Police Department for their diligent work in uncovering this complex scheme and seeking to hold the defendants accountable for their personal and economic harms.”

“We will not allow deceitfulness to prevail for selfish financial gain,” said FBI SAC Buie.  “The FBI is proud to work with our local law enforcement and prosecutorial partners to fight these extravagant fraud schemes and ensure justice is served.”

“The Arlington Heights Police Department is proud of the results achieved by detectives and agents who investigated this multistate fraud scheme involving a structured plan designed to defraud numerous insurance companies,” said AHPD Chief Pecora.  “This investigation is a clear example of local and federal partners working in collaboration to defeat the criminal element and halt their unlawful activity.”

Charged in the indictment are JAMES MILLS, also known as “Jamie Montes,” 47, of Oak Lawn, Ill., JOSEPH BROWN, 50, of Chandler, Ariz., JULEY ELY, 47, of Oak Lawn, Ill., GINGER ELY, 26, of Oak Lawn, Ill., SYLVIA EVANS, 48, of Kissimmee, Fla., HOLLY STERGO, also known as “Holly Stego,” 29, of Missouri City, Texas, JESSICA VACA, 51, of Deerfield Beach, Fla., ANGELA BECHO, 30, of Fort Lauderdale, Fla., FRANK COSTELLO, 44, of Hoffman Estates, Ill., JOE ROUGA, 29, of Oak Lawn, Ill., MARY BACCO, 53, of Bridgeview, Ill., STEVE MONTEGA, also known as “Fonzie Cerano,” 44, of Orland Park, Ill., NIKO RISTICK, 23, of Orland Park, Ill., TONY RISTICK, also known as “Anthony Walker,” 52, of Orlando, Fla., RACHEL MONTEGA, also known as “Samantha Walker,” 48, of Orlando, Fla., ROBERT CRAIG, also known as “Jake,” 37, of Lakeland, Fla., STEVE VEGA, also known as “Cabby,” 45, of Fort Lauderdale, Fla., SOPHIE BECHO, 46, of Fort Lauderdale, Fla., MARK BLANCA, 30, of Burbank Ill., DIANA LUMAS, 30, of Burbank, Ill., RICKY BLANCA, also known as “Fonz Ristick,” 48, of Orland Park, Ill., DAVID JENSEN, also known as “Tony,” 52, of Lakeland, Fla., and JOE JOHN, 66, of Arlington Heights, Ill.

The charges allege that the defendants paid premiums on the fraudulently obtained policies for two years, at which time the period for contestability expired, making it more difficult for insurance companies to decline death benefit claims.  Fraudulent claims for death benefits would then be submitted, using records that falsely identified a different deceased person as the insured, the indictment states.  To support the fraudulent claims, the schemers obtained false death certificates in the names of the insureds and made false representations about the deceased person to law enforcement, first responders, medical personnel, funeral home staff, and cemetery employees, the charges allege.

The public is reminded that an indictment is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Each count in the indictment is punishable by up to 20 years in federal prison.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — With the summer months approaching, John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today provided an update on federal prosecutions and strategies to combat violent crime in Chicago and the surrounding area.

“Anyone thinking of engaging in gun violence or trafficking dangerous narcotics in Chicago this summer needs to know that a federal prosecution could await them,” said U.S. Attorney Lausch.  “A primary goal of our office is to reduce violent crime, and we will continue to use every available federal law enforcement tool to keep people safe this summer and beyond.”

The centerpiece of the Department of Justice’s violent crime reduction efforts continues to be Project Safe Neighborhoods (PSN).  Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems and develop comprehensive solutions to address them.  PSN is an evidence-based program that focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs to pursue lasting reductions in crime.

The U.S. Attorney’s Office in Chicago also participates in a Department of Justice cross-jurisdictional strike force, led locally by U.S. Attorney Lausch, to disrupt illegal firearms trafficking and reduce gun violence.   As part of the Chicago firearms trafficking strike force, the U.S. Attorney’s Office collaborates with the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and to identify patterns, leads, and potential suspects in violent gun crimes.  The Chicago strike force’s efforts have been substantially enhanced by the Chicago Police Department’s (CPD’s) Gun Investigations Team.

“Firearms traffickers and straw purchasers enable violence,” said U.S. Attorney Lausch.  “The cross-jurisdictional strike force has increased collaboration with our federal, state, and local law enforcement partners and enhanced our longstanding efforts to hold accountable individuals or groups who illegally traffic firearms into Chicago.”

In addition to a sustained focus on prosecutions of federal firearm offenses, the U.S. Attorney’s Office endeavors to disrupt violent crime by seeking pre-trial detention for defendants who pose a danger to the community and pursuing appropriate prison sentences to deter dangerous individuals from continuing to cause violence in their communities. 

Following up on activities most recently reported in November of last year, the U.S. Attorney’s Office remains active in fighting violent crime through enforcement actions, prosecutions, and community partnerships, as illustrated by the examples below from the past six months.

Enforcement Actions and Prosecution Activity

The U.S. Attorney’s Office works closely with U.S. law enforcement agencies, including ATF, Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), Postal Inspection Service (USPIS), Internal Revenue Service Criminal Investigation Division (IRS-CI), and U.S. Marshals Service (USMS), to investigate and prosecute a variety of violent crimes.  State and local partners in this effort include CPD, Illinois State Police (ISP), Illinois Department of Corrections (IDOC), Cook County State’s Attorney’s Office, Cook County Sheriff’s Office, Rockford Police Department (RPD), and other police departments throughout northern Illinois.

The primary focus of these collaborative law enforcement efforts is to investigate and prosecute gangs and other groups of individuals who work in concert to commit violent crimes, including murders, attempted murders, robberies, carjackings, drug trafficking, and firearms trafficking.  In addition, these enforcement efforts also identify for potential federal prosecution individual offenders who drive violence.

Firearm and violent crime investigations in Chicago have also been bolstered by an important tool from ATF – the National Integrated Ballistic Information Network (NIBIN).  NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms.  NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles.  Federal, state, and local law enforcement in Chicago have used NIBIN extensively to help solve violent crimes and prosecute trigger-pullers and other gun offenders. 

Racketeering and Gang-Related Prosecutions

“Combating the unacceptable level of gang violence in Chicago has been and will continue to be a top priority in our office,” said U.S. Attorney Lausch.

• A member of a violent Chicago street gang was sentenced to 35 years in federal prison for engaging in a pattern of racketeering activity that included the murder of a rival gang member. LUIS CONTRERAS, of Chicago, admitted that the murder was committed to further the purposes of the Latin Saints, a criminal organization whose members engaged in drug dealing and violence on Chicago’s South Side.  ATF, HSI, and CPD led the investigation.

Firearm Trafficking and Firearm Theft Prosecutions

“We are using every available federal law enforcement tool to continue to bring impactful cases that hold firearms traffickers accountable and reduce violent crime in Chicago,” said U.S. Attorney Lausch.

• DEVON DOW, of Chicago, was charged with trafficking individually manufactured “ghost guns” in Chicago.  Dow allegedly sold seven “ghost guns” to an undercover law enforcement officer on the city’s South Side.  The firearms were considered “ghost guns” because they contained no identifiable serial number and had been manufactured from parts collected from various sources.  HSI and CPD led the probe.
• Five men were indicted for allegedly trafficking guns from St. Louis to Chicago.  The charges accuse ROBERT NARUP, of Washington, Mo., of buying firearms at gun shows throughout the United States and illegally selling them to JEROME BOYKIN, of St. Louis, Mo.  Boykin then allegedly brought the guns to Chicago and sold them to ROGELIO MANCERA, of Schaumburg, Ill., in exchange for marijuana.  The charges accuse Mancera, RODOLFO ORTEGA of Chicago, and HECTOR CHACON of Chicago, with selling the guns on the streets of Chicago.  ATF and CPD’s Gun Investigations Team led the probe, with assistance from the U.S. Attorney’s Office for the Eastern District of Missouri.
• A federal jury convicted JOSEPH GHANDOUR, of Glenview, Ill., of illegally selling a “ghost gun” to a convicted felon in a suburban Chicago grocery store parking lot.  Unbeknownst to Ghandour, the felon to whom he sold the rifle was cooperating with law enforcement.  FBI investigated.
• A man was indicted on firearm charges for allegedly straw purchasing 27 handguns from suburban Chicago stores.  MATTHEW JAMAAL JOHNSON, of Dolton, Ill., allegedly falsely certified on federal forms that he was the actual buyer, when, in reality, Johnson purchased the guns on behalf of another individual.  ATF and CPD led the probe.

Carjacking and Other Violent Crime Prosecutions

• A federal jury convicted a central Illinois man in the murder of McHenry County Sheriff’s Deputy Jacob Keltner and the attempted murder of three other federal law enforcement officers.  Keltner, who was serving as a Special Deputy U.S. Marshal, was fatally wounded on March 7, 2019, when law enforcement attempted to execute a warrant for FLOYD E. BROWN’s arrest at a Rockford hotel.  Brown fired multiple shots at a Deputy U.S. Marshal and two Special Deputy U.S. Marshals who were attempting to take Brown into custody.  Brown then jumped out of a hotel window and fired a shot that fatally struck Special Deputy Keltner.  FBI led the murder investigation, with assistance from ATF, U.S. Marshals Service, McHenry County Sheriff’s Office, Rockford Police Department, Winnebago County Sheriff’s Office, Bloomington Police Department, Loves Park Police Department, Lincoln Police Department, Logan County Sheriff’s Office, and ISP. 
• ANGELO STANTON, of Chicago, was sentenced to 28 years in federal prison for violently robbing more than a dozen Chicago stores.  Stanton carried out takeover-style heists in which he pointed a handgun at employees and demanded cash from the register or safe.  He fired shots in five heists, wounding two store employees.  The probe was led by FBI and CPD, with assistance from ISP and the Cook County Sheriff’s Office.
• A federal judge sentenced two men to federal prison for stealing expensive watches and jewelry at gunpoint from a jewelry store in Hinsdale, Ill.  TOBIAS DIGGS, of Chicago, and JOSHUA MCCLELLAN, of Oak Lawn, Ill., took more than $400,000 in merchandise, including watches by Frederique Constant, Patek Phillipe, and Tudor.  FBI investigated, with assistance from the Hinsdale Police Department, Oak Lawn Police Department, FBI’s Cellular Analysis Survey Team (CAST), and the Felony Investigation Assistance Team (FIAT), a multi-jurisdictional law enforcement task force in the western suburbs of Chicago.
• AARON CLARK, of Chicago, was sentenced to 22 years in prison for his role in robberies that targeted cell phone stores in the suburbs of Chicago.  Clark brandished a gun during the heists and threatened to shoot store employees.  ATF and CPD led the probe, with assistance from the Calumet City Police Department, Peotone Police Department, Cook County State’s Attorney’s Office, and Will County State’s Attorney’s Office.
• OCIE BANKS, JR., of Berwyn, Ill., was charged with robbing cell phone stores in the Chicago suburbs.  Banks allegedly brandished a firearm in three robberies and one attempted robbery.  FBI investigated.
• JAMAR JARVIS, of Chicago, was sentenced to ten years in prison for carjacking a vehicle at gunpoint in the city’s Edgewater neighborhood.  FBI and CPD investigated, with assistance from the Cook County State’s Attorney’s Office.

Illegal Possession of Firearms Prosecutions

“Any felon thinking about picking up a gun in Chicago this summer should expect to be prosecuted to the fullest extent of the law and face the possibility of going to federal prison for a long time,” said U.S. Attorney Lausch.

• Three convicted felons involved in an exchange of gunfire in a store parking lot in a Chicago suburb were indicted on federal firearm violations.  The trio had previously been convicted of felony offenses and were prohibited by federal law from possessing firearms.  ATF led the investigation, with assistance from the Calumet City Police Department, U.S. Marshals Service, South Suburban Major Crimes Task Force, South Suburban Emergency Response Team, Cook County Sheriff’s Office, and Illinois State Police.
• Convicted felon CIPRIANO RIVERA, of Villa Park, Ill., was sentenced to nine years in federal prison for illegally possessing a loaded handgun near an alley in Chicago’s West Town neighborhood.  ATF and CPD conducted the investigation.
• WILLIE WARE, of Riverdale, Ill., and KEVON REED, of Chicago, were arrested after being charged with illegally possessing firearms on a CTA train car.  FBI and CPD investigated, with assistance from ATF.
• LAVOYCE BAYS, of Markham, Ill., was sentenced to more than eight years in prison for illegally possessing a firearm and ammunition, and shooting a man at a gas station after a dispute.  ATF and the Markham Police Department investigated.
• TERRANCE WEATHERSBY, of Chicago, was sentenced to more than seven years in prison for illegally possessing a loaded handgun equipped with a high-capacity magazine on a street in Chicago’s Austin neighborhood.  ATF and CPD investigated.
• A felon was sentenced to seven years in prison for illegally possessing a loaded semiautomatic handgun at a block party on the South Side of Chicago.  ANTHONY CARR, of Chicago, tossed the gun into a large outdoor tent before Chicago Police officers apprehended him.  CPD and ATF investigated.
• BERNARD HARVEY, JR., of Indianapolis, Ind., pleaded guilty to a firearm charge, admitting to illegally possessing a semi-automatic rifle at a Veterans Affairs hospital in Chicago.  FBI and CPD investigated, with assistance from the VA Police Department.
• KEYZOE WILLIAMS, of Chicago, was arrested for allegedly illegally possessing a loaded machine gun in Chicago.  Williams possessed a handgun equipped with a conversion device, also known as an “auto sear” or “Glock switch,” which turned the firearm into a machine gun capable of automatically firing more than one shot with a single trigger pull.  ATF investigated, with assistance from ISP, CPD, Willowbrook Police Department, DuPage County State’s Attorney’s Office, and DuPage Metropolitan Emergency Response and Investigations Team.

Significant Drug Trafficking Prosecutions

The U.S. Attorney’s Office targets traffickers who bring illegal drugs into Illinois from other states or countries, with a focus on organizations or individuals who use guns, violence, and threats of violence to protect and promote their illegal businesses.  The U.S. Attorney’s Office works directly with state’s attorney’s offices in Cook County and throughout the district to ensure that individuals trafficking drugs are charged with appropriate offenses in either federal or state court.

Public safety is also being threatened by unprecedented levels of opioid misuse and overdose.  Opioids are a class of highly addictive drugs that includes heroin, fentanyl, and prescription painkillers such as oxycodone and hydrocodone.  U.S. Attorney Lausch in November 2019 created an Opioid Task Force for the purpose of combatting the growing number of unlawful distributions of controlled substances fueling the nation’s opioid crisis.  This effort includes prosecuting the leaders of traditional drug trafficking organizations, as well as rogue health care providers, pharmacists, and others who contribute to the misuse of opioids.  “We are actively attacking the opioid crisis from all investigative and prosecutorial angles,” said U.S. Attorney Lausch.

• ADÁN CASARRUBIAS SALGADO, of Guerrero, Mexico, was extradited from Mexico on a federal indictment charging him with distributing heroin in the Chicago area in 2014 and laundering hundreds of thousands of dollars in proceeds.  DEA investigated.
• Ten alleged members or associates of a Chicago street gang were charged with conspiring to distribute heroin and cocaine on the West Side of Chicago.  The investigation, led by HSI and CPD, used undercover and covert surveillance operations and resulted in the seizure of multiple kilograms of suspected heroin, some of which was laced with fentanyl, and cocaine, as well as four rifles, four handguns, a MAC-10 submachine gun, a shotgun, and more than 450 rounds of ammunition.  This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation.
• A central Illinois man was sentenced to 16 years in federal prison for attempting to traffic cocaine in Chicago.  TEKOA Q. TINCH, of Bloomington, Ill., attempted to buy a kilogram of cocaine from an undercover law enforcement officer in the city’s Little Village neighborhood.  DEA, ATF, and CPD led the investigation.
• A federal grand jury charged GILBERTO ALMANZA, of North Chicago, Ill., with distributing approximately 46 kilograms of cocaine to an individual who, unbeknownst to Almanza, was cooperating with law enforcement.  Police later conducted a court-authorized search of Almanza’s residence and discovered approximately two kilograms of cocaine and a loaded handgun, the charges allege.  DEA conducted the probe.
• A federal jury convicted a suburban Chicago man of laundering illegal narcotics proceeds on behalf of drug traffickers in Mexico.  HUAZHI HAN, of North Riverside, Ill., schemed with an individual in Mexico to facilitate the receipt of more than $1 million in narcotics proceeds in the United States.  DEA investigated, with assistance from IRS-CI, CPD, HSI, and the U.S. Department of Treasury, Financial Crimes Enforcement Network.
• A man was arrested after law enforcement seized fentanyl and a “pill press” from his suburban Chicago residence.  TROY CLARK, of Calumet City, Ill., also allegedly possessed other equipment that can be used to manufacture counterfeit pills, including a funnel, metal press, and dye pieces.  DEA, USPIS, and CPD led the probe, with assistance from the Calumet City Police Department.
• An inmate in a state prison in Arizona was charged with brokering the sale of fentanyl and methamphetamine in Illinois.  MANUEL GARCIA allegedly coordinated with a buyer outside of the prison to purchase methamphetamine and fentanyl for delivery to the Chicago area.  DEA investigated.

Community Partnerships

The PSN program continues to invest resources in violence-prevention initiatives.

The PSN Chicago Task Force, which includes members from the U.S. Attorney’s Office, CPD, ATF, IDOC, Cook County State’s Attorney’s Office, and academic researchers, is designed to address gun violence in certain neighborhoods in Chicago with the highest violent crime rates through aggressive prosecution of violent offenders, using all available federal statutes.  The task force, which in 2018 expanded to include the city of Rockford, establishes a working relationship between the U.S. Attorney’s Office, CPD, Cook County State’s Attorney’s Office, RPD, and Winnebago County State’s Attorney’s Office. 

The PSN Task Force dedicates federal grant funds to support crime prevention programs that are aligned with law enforcement’s strategy to address gun violence.  Currently, PSN grant funds support Camp Hope, a crime prevention program in Rockford for at-risk juveniles who have experienced or witnessed domestic violence; Choose to Change, a program created by Children’s Home & Aid and Youth Advocate Programs in Chicago to engage youth who are heavily impacted by violence and trauma by connecting them with intensive advocate and wraparound support services and trauma-informed therapy; and Readi Chicago’s Reentry Program, a pilot program in Chicago jointly developed by Heartland Alliance and IDOC to provide both pre-release and post-release services for those returning home from prison to reduce gun violence and recidivism among returning citizens.

Members of the U.S. Attorney’s Office have also participated in offender notification meetings and youth outreach forums.  Even during the current COVID-19 pandemic, these meetings and forums are still being held, including in a virtual environment, to maintain the outreach to former offenders.  Offender notification meetings provide an opportunity for individuals who have been convicted of a state or federal offense to make an informed choice not to engage in further criminal activity.  Researchers at Arizona State University found that the forums in Chicago have a positive influence on the offenders’ perception of police and help create an understanding that criminal activity results in a higher risk to return to prison.  Researchers at Yale University found that ex-offenders who attend an offender notification meeting in Chicago are 30% less likely to commit a new offense than those who did not attend a meeting.  The quarterly youth forums assist teenagers to identify a path beyond criminal activity.  The youth forums are conducted in partnership with CPD, the Cook County Juvenile Temporary Detention Center, and local social service agencies.

CHICAGO — An alleged drug trafficker charged with distributing heroin in the Chicago area was arraigned today in federal court in Chicago after his extradition from Mexico.

ADÁN CASARRUBIAS SALGADO, also known as “El Tomate,” “Tomatito,” “Star,” and “Silver,” was charged in an indictment unsealed today in the Northern District of Illinois with conspiracy, drug trafficking, and money laundering offenses.  The indictment alleges that Casarrubias Salgado distributed multiple kilograms of heroin in the Chicago area in 2014 and transferred hundreds of thousands of dollars in proceeds back to Mexico.

Casarrubias Salgado, 53, of Guerrero, Mexico, was extradited to the United States on Thursday and remains detained in federal custody.  He pleaded not guilty during his arraignment this afternoon before U.S. District Judge Matthew F. Kennelly in Chicago.  A status hearing was set for June 30, 2022, at 1:30 p.m.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration.  Valuable assistance was provided by the U.S. Marshals Service, the DEA Mexico Country Office, and the Department of Justice’s Office of International Affairs.  The government is represented by Assistant U.S. Attorney James P. Durkin.

This indictment is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, and other criminal offenders that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  The charges in the indictment carry a mandatory minimum sentence of ten years in federal prison and a maximum of life.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

The United States Attorney’s Office for the Northern District of Illinois today announced that, as part of a continued effort to enforce the Americans with Disabilities Act (ADA), it has reached a settlement with Faux Ever Beauty in Countryside, Ill., to resolve claims that the salon discriminated against a potential client with HIV.

The U.S. Attorney’s Office found that Faux Ever Beauty discriminated against a person with HIV when the salon’s owner unlawfully refused to perform an eyebrow microblading procedure due to the person’s HIV status.  The investigation revealed that Faux Ever Beauty’s actions were not consistent with current medical knowledge.  Moreover, an individual’s HIV status is not a legitimate or lawful reason to refuse to treat a patient seeking services.

Under the terms of the settlement agreement and consistent with penalties available under the ADA, Faux Ever Beauty paid $4,500 to the victim of discrimination.  In addition, the owner of Faux Ever Beauty must attend training on the requirements of the ADA, implement an anti-discrimination policy, and report to the U.S. Attorney’s Office any time a person is not accepted as a patient due to a medical condition – with a written justification for the decision.  The U.S. Attorney’s Office waived the civil fine in recognition of Faux Ever Beauty’s cooperation during the investigation. 

“Salons and other businesses should understand that individuals seeking physical services should not be excluded based on HIV,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois.  “This settlement should send a clear message that individuals living with HIV are entitled to the same services as everyone else.”  

Title III of the ADA prohibits public accommodations, such as salons, medical offices, and tattoo parlors, from excluding people with disabilities, including people with HIV, from enjoying goods, services, privileges, facilities, and advantages provided.  For more information regarding the Department of Justice’s efforts to combat discrimination, please visit the official ADA government website.  To learn more about the obligations of public accommodations under federal disability rights statutes, call the Department of Justice’s toll-free ADA information line at 800-514-0301, 800-514-0383 (TTY).

Assistant U.S. Attorneys Patrick Johnson and Valerie R. Raedy represented the government during the Faux Ever Beauty investigation and settlement.

CHICAGO — Former Illinois State Rep. LUIS ARROYO has been sentenced to nearly five years in federal prison for participating in a bribery scheme involving a fellow state lawmaker and Arroyo’s private lobbying client, a sweepstakes gaming company.

Arroyo, 67, of Chicago, pleaded guilty last year to a federal wire fraud charge.  U.S. District Judge Steven C. Seeger imposed a 57-month prison sentence Wednesday after a hearing in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Justin Campbell, Special Agent-in-Charge of the Chicago office of the IRS Criminal Investigation Division.  The government was represented by Assistant U.S. Attorney James P. Durkin.

Arroyo represented the 3rd District in the Illinois House of Representatives from 2006 to 2019.  He has also managed Spartacus 3 LLC, a private lobbying firm in Chicago.

In 2018 and 2019, Arroyo accepted thousands of dollars in bribes from the gaming company, Collage LLC, in the form of checks made payable to Spartacus.  In exchange for those bribes, Arroyo promoted legislation in the Illinois House of Representatives related to the sweepstakes industry and advised other state lawmakers to support the legislation. 

In August 2019 Arroyo offered to have payments made to an Illinois state senator in return for the senator’s support of sweepstakes-related legislation.  On Aug. 22, 2019, Arroyo met with the senator at a restaurant in Skokie, Ill., and provided him with a $2,500 check from Collage as an initial bribe payment, with the expectation that the senator would receive similar payments for 12 months.  Arroyo told the senator, “This is the jackpot,” and then wrote the name of the senator’s nominee on the company’s check.  The nominee’s name was used for the purpose of concealing the illicit payment.

CHICAGO — A man has been sentenced to a year in federal prison for throwing an incendiary device at police officers in Naperville, Ill., during a period of civil unrest in June 2020.

CHRISTIAN REA, 21, of Aurora, Ill., pleaded guilty earlier last year to a federal charge of obstructing law enforcement during the commission of civil disorder.  U.S. District Judge Thomas M. Durkin on Tuesday imposed the one-year prison sentence and ordered Rea to pay $13,585.66 in restitution to the city of Naperville.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by the Naperville Police Department and Aurora Police Department. 

“By intentionally throwing the firework at police officers, the defendant demonstrated a lack of respect for the law,” Assistant U.S. Attorney Barry Jonas argued in the government’s sentencing memorandum.  “His actions could have sparked the crowd to engage in the very unlawful conduct the officers were there to prevent.”

The incident occurred in downtown Naperville on the evening of June 1, 2020.  The officers responded to civil disorder in the business district involving dozens of individuals causing damage to property. 

Rea admitted in a plea agreement that he threw a lit explosive or incendiary device in the proximity of a line of uniformed officers who were standing next to a police vehicle.  As a result of the explosion, multiple officers suffered injuries, including repeated headaches, ringing in the ears, and vision loss.

CHICAGO — An information technology specialist has been indicted on a federal criminal charge for allegedly hacking into the server of a suburban Chicago health care company where he formerly worked as a contractor.

AARON LOCKNER illegally accessed the server of the health care company, which operated a clinic in Oak Lawn, Ill., on April 16, 2018, according to an indictment returned Tuesday in U.S. District Court in Chicago.  The cyber intrusion impaired medical examinations, treatment, and care of multiple individuals, the indictment states.  Lockner had previously performed information security and technology work for the health care company and had access to its computer network, the indictment alleges.  Two months before the cyber attack, Lockner sought and was denied an employment position with the health care company, the indictment states.

The indictment charges Lockner, 35, of Downers Grove, Ill., with one count of intentionally causing damage to a protected computer.  Arraignment in federal court in Chicago has not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr, Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorney A.J. Dixon.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

The charge in the indictment is punishable by up to ten years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — The Chief of Police in the village of Summit, Ill., corruptly accepted money from a local businessman intending to be influenced and rewarded in connection with the transfer of a liquor license to another individual, according to a federal indictment.

The indictment returned Tuesday in U.S. District Court in Chicago alleges that Chief JOHN KOSMOWSKI conspired with a Summit building inspector to accept more than $5,000 from the businessman in 2017.  The pair accepted the money intending to be influenced and rewarded in connection with the transfer of a liquor license to another person, the indictment states.  Kosmowski allegedly received a cash payment from the businessman on March 23, 2017, and then gave the building inspector a portion of it.

The charges allege that Kosmowski met with the building inspector earlier this year and informed him of the federal investigation into the payment.  During the meeting, Kosmowski allegedly sought to corruptly persuade the building inspector to mischaracterize the purpose of the payment from Kosmowski to the inspector by falsely suggesting that it was a loan, the indictment states.

The indictment charges Kosmowski, 54, of Lockport, Ill., with one count of bribery conspiracy, one count of bribery, and one count of obstruction of justice.  The building inspector, WILLIAM MUNDY, 59, of Summit, Ill., is charged with one count of bribery conspiracy and one count of filing a false tax return.  Arraignments in federal court in Chicago have not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The government is represented by Assistant U.S. Attorneys Tiffany Ardam and Jimmy L. Arce.

The public is reminded that an indictment is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A Chicago man has been charged in federal court with trafficking individually manufactured “ghost guns” in the city this year.

DEVON DOW, 22, is charged with willfully dealing firearms without a license.  He was arrested Tuesday afternoon.  A detention hearing is set for Friday at 1:00 p.m. before U.S. Magistrate Judge Heather K. McShain.

The charge and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations; and David Brown, Superintendent of the Chicago Police Department.  The U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives provided valuable assistance.  The government is represented by Assistant U.S. Attorney Thomas P. Peabody.

According to a criminal complaint filed in U.S. District Court in Chicago, Dow sold seven “ghost guns” on five different occasions in Chicago this year.  The transactions allegedly occurred in a parking lot in the Grand Crossing neighborhood on the city’s South Side.  The firearms were considered “ghost guns” because they contained no identifiable serial number and had been manufactured from parts collected from various sources.  Unbeknownst to Dow, the individual to whom he sold the guns was an undercover law enforcement officer, the complaint states.

Disrupting illegal firearms trafficking is a centerpiece of the Department of Justice’s cross-jurisdictional strike force aimed at reducing gun violence.  As part of the Chicago firearms trafficking strike force, the U.S. Attorney’s Office collaborates with ATF, HSI, CPD, and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and identify patterns, leads, and potential suspects in violent gun crimes.

Holding illegal firearm possessors accountable through federal prosecution is also a focus of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy.  In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district.

The public is reminded that a complaint contains only charges and is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  The charge in the complaint is punishable by a maximum sentence of five years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A member of a violent Chicago street gang has been sentenced to 35 years in federal prison for engaging in a pattern of racketeering activity that included the murder of a rival gang member.

LUIS CONTRERAS, 42, of Chicago, pleaded guilty earlier this year to a federal charge of conspiracy to commit racketeering activity.  U.S. District Judge Matthew F. Kennelly imposed the prison sentence Thursday after a hearing in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen De Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; Angie Salazar, Special Agent-in-Charge of Homeland Security Investigations in Chicago; and David Brown, Superintendent of the Chicago Police Department.  The government was represented by Assistant U.S. Attorney Kavitha Babu.

Contreras admitted in a plea agreement that he was a member of the Latin Saints street gang, a criminal organization whose members and associates engaged in drug dealing and violence, including murder and assault, to acquire and preserve the gang’s territory in the Back of the Yards neighborhood on Chicago’s South Side.  Contreras further admitted that on Feb. 18, 2018, he and other members of the Latin Saints fired multiple shots at rival gang members who were sitting in a vehicle in the 7700 block of South Kilbourn Avenue in Chicago’s Scottsdale neighborhood.  The shots killed Andre Franzell, 23, and wounded another individual.  Contreras admitted that the murder of Franzell was committed to further the purposes of the Latin Saints.

When Contreras was arrested at his home by federal law enforcement in October 2018, he was found in possession of two rifles and a handgun.

ROCKFORD — A federal grand jury in Rockford has indicted a Loves Park man on drug and firearm offenses.

ORENTHO HURD, 27, is charged with possession with intent to distribute cocaine, possession of a firearm by a previously convicted felon, possession of a machine gun, and possession of a firearm in furtherance of a drug trafficking crime.  According to the indictment, Hurd illegally possessed the cocaine and machine gun in Loves Park on Aug. 26, 2021.  Arraignment in U.S. District Court in Rockford has not yet been scheduled. 

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, and Explosives.  The Rockford Police Department provided valuable assistance in the investigation.  The government is represented by Assistant U.S. Attorneys Michael Beckman and Robert Ladd.

The cocaine charge carries a maximum sentence of 20 years in federal prison, while the machine gun and felon-related charges are each punishable by up to ten years.  Possession of a firearm in furtherance of a drug trafficking crime carries a mandatory minimum sentence of five years.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

Holding drug dealers and illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy.  In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district.

The public is reminded that an indictment contains only charges and is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

CHICAGO —A Chicago technology executive has been sentenced to a year in federal prison for illegally exporting computer equipment from the United States to a nuclear research agency of the Pakistani government.

OBAIDULLAH SYED, 67, of Northbrook, Ill., pleaded guilty last year to conspiring to export goods from the U.S. without a license from the Department of Commerce and to submit false export information.  U.S. District Judge Mary M. Rowland on Tuesday sentenced Syed to a year and a day in federal prison.  Prior to sentencing, Syed forfeited $247,000 of criminally derived cash to the U.S. government.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations; Aaron Tambrini, Special Agent-in-Charge of the U.S. Department of Commerce, Bureau of Industry and Security-Office of Export Enforcement, Chicago Field Office; and Cynthia A. Bruce, Special Agent-in-Charge of the U.S. Department of Defense, Defense Criminal Investigative Service, Southeast Field Office.  The government was represented by Assistant U.S. Attorney Peter M. Flanagan.

Syed owned Pakistan-based BUSINESS SYSTEM INTERNATIONAL PVT. LTD., and Chicago-based BSI USA.  The companies provided high-performance computing platforms, servers, and software application solutions.  Syed admitted in a plea agreement that from 2006 to 2015 he conspired with his company’s employees in Pakistan to violate the International Emergency Economic Powers Act by exporting computer equipment from the U.S. to the Pakistan Atomic Energy Commission without obtaining the required authorization from the U.S. Department of Commerce.  The PAEC is a Pakistani government agency designated by the U.S. government as an entity which may pose an unusual or extraordinary threat to the national security, foreign policy, or economy of the United States.

Syed further admitted that he and the other conspirators falsely represented to U.S.-based computer manufacturers that the illegal shipments were intended for Pakistan-based universities or Syed’s businesses, when, in fact, the conspirators knew that the true end user of each shipment was either the PAEC or a research institute that trained the agency’s engineers and scientists.  In so doing, Syed and his company caused the U.S.-based computer manufacturers to submit to the U.S. government shipping documents that listed false end-users for the U.S.-origin goods, thereby undermining the U.S. government’s ability to stop the illegal shipments.

Business System International Pvt. Ltd. was charged in the conspiracy as a corporate defendant.  The company has yet to respond to the charges.

CHICAGO — A suburban Chicago man was sentenced today to more than three years in federal prison for sending a series of threatening phone calls to various members of the United States Congress and threatening to commit violence at the 2021 presidential inauguration in Washington, D.C.

U.S. District Judge Ronald A. Guzman sentenced LOUIS CAPRIOTTI, 47, of Chicago Heights, Ill., to 37 months in prison.  Capriotti pleaded guilty last fall to a federal charge of transmitting a threat in interstate commerce.  He has been in federal custody since his arrest on Jan. 12, 2021, and will receive credit for time already served.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The U.S. Secret Service and U.S. Capitol Police participated in the investigation.  Assistant U.S. Attorneys James P. Durkin and William Dunne represented the government.

In a Dec. 29, 2020, voicemail for a U.S. House member, Capriotti stated that if certain individuals “think that Joe Biden is going to put his hand on the Bible and walk into that [expletive] White House on January 20th, they’re sadly [expletive] mistaken.”  Capriotti further stated in the voicemail, “We will surround the [expletive] White House and we will kill any [expletive] Democrat that steps on the [expletive] lawn.”

Capriotti in November and December 2020 left other threatening messages on the voicemail systems of other members of Congress, during which he falsely stated that he was an active U.S. Marine and referred to certain members of Congress as “terrorists.”

“Capriotti’s crime was a serious offense,” Assistant U.S. Attorney James P. Durkin argued in the government’s sentencing memorandum.  “Such threats must be taken seriously because they have real implications for the victims receiving them.”

CHICAGO — A federal judge has sentenced a Chicago man to 30 years in federal prison for forcing women and children to engage in commercial sex acts in the city and suburbs.

From 2012 to 2014, CHARLES FEARS and a co-defendant, SAMUEL NICHOLS, operated a sex trafficking business through which they used force, fraud, and coercion to cause multiple women and children to engage in commercial sex acts and turn over the proceeds to Fears and Nichols.  The men supplied the victims, some of whom were as young as 13 years old, with drugs and alcohol while coercing them to participate in the commercial sex acts.  Fears and Nichols often hit, slapped, and punched the victims who worked for them, including incidents in which Fears put a victim’s head into a toilet after she broke his rules.  The pair openly flaunted their roles as traffickers, flashing money in social media posts and using the trafficking proceeds to fund a Chicago-area rap group that posted music videos online.

Fears, 28, of Chicago, pleaded guilty in 2018 to federal conspiracy and sex trafficking charges.  U.S. District Judge Virginia M. Kendall on Friday imposed the 30-year prison term for Fears and ordered that it be followed by court supervision for life.  Judge Kendall also ordered Fears to pay more than $1.6 million in restitution to the victims.

Nichols, 37, of Chicago, was sentenced in 2019 by Judge Kendall to life in prison.

Fears’s sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by the Carol Stream, Ill., Police Department, Downers Grove, Ill., Police Department, and DuPage County Sheriff's Office.

“Fears and Nichols controlled their victims physically and psychologically,” Assistant U.S. Attorneys Sarah Streicker, Michelle Petersen, and Elizabeth Pozolo argued in the government’s sentencing memorandum.  “It is nearly impossible to comprehend the trauma Fears inflicted on his victims.”

If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com/home or by calling 1-800-843-5678.  The service is available 24 hours a day, seven days a week.

CHICAGO — A joint federal and local drug trafficking investigation has resulted in federal charges against ten alleged members or associates of a Chicago street gang for conspiring to distribute heroin and cocaine.

During the multi-year probe, law enforcement shut down three open-air drug markets in the West Garfield Park neighborhood on the West Side of Chicago.  The investigation, led by Homeland Security Investigations and the Chicago Police Department, utilized extensive undercover and covert surveillance operations and resulted in the seizures of multiple kilograms of suspected heroin, some of which was laced with fentanyl, and cocaine, as well as four rifles, four handguns, a MAC-10 submachine gun, a shotgun, and more than 450 rounds of ammunition.  A criminal complaint filed in U.S. District Court in Chicago alleges that the ten federal defendants are members or associates of the Four Corner Hustlers street gang. 

The ten federal defendants are in law enforcement custody and have made initial appearances in U.S. District Court in Chicago.  In addition to the federal defendants, more than 20 other individuals were charged with state drug offenses in the Circuit Court of Cook County.

The federal charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Angie Salazar, Special Agent-in-Charge of the Chicago office of HSI; and David Brown, Superintendent of CPD.  Valuable assistance was provided by the IRS Criminal Investigation Division in Chicago.  Assistant U.S. Attorneys Shawn McCarthy, David Green, and Kristin Pinkston represent the government.

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation.  OCDETF identifies, disrupts, and dismantles criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.

“Fentanyl, heroin, and cocaine are extremely potent drugs that have wreaked havoc in too many of our communities,” said U.S. Attorney Lausch.  “We will continue to focus our efforts on individuals and groups who traffic dangerous drugs and prosecute those offenders in federal court.”

“Our goal is for law abiding residents to enjoy safety and peace in their communities, and holding these criminals accountable for their actions is a major step toward achieving that goal,” said HSI SAC Salazar.  “We will continue to put pressure on these dangerous gangs by investigating and prosecuting their members, just as we are doing in this case.”

Charged with federal drug conspiracy are NATHANIEL EVANS, 38, of Aurora, Ill., JARELLE JONES, 24, of Forest Park, Ill., MARQUIS JONES, 29, of Chicago, DEVONTAY LOGAN, 27, of Chicago, JOSEPH WILLIAMS, 31, of Chicago, DORNELL WILLIAMS, 34, of Chicago, TEREMIUS WEBB, 25, of Chicago, ANTONIO FLETCHER, 40, of Chicago, KYLE LINTON, 25, of Chicago, and MAURICE BELL, 40, of Chicago.

From February 2021 to April 2022, law enforcement officers made numerous undercover purchases of narcotics from various members of the organization.  The drugs at the open-air markets were typically packaged in small baggies and sold for $10 each – with discounts for higher quantity sales, the complaint states.

According to the federal charges, Evans directed the drug trafficking operation and supervised the three open-air markets, which were located in the 3900 block of West Jackson Boulevard, 3900 block of West Van Buren Street, and 4000 block of West Maypole Avenue.  Jarelle Jones, Marquis Jones, Joseph Williams, and Dornell Williams allegedly worked as “shift managers,” overseeing drug sales at the illegal markets at various times of the day.  The charges allege that Logan picked up narcotics from suppliers, delivered them to the Jackson Boulevard location, and collected illicit proceeds after the sales.  Webb, Fletcher, and Linton allegedly worked as street-level dealers, while the charges accuse Bell of obtaining narcotics for sales at the Maypole Avenue location. 

The public is reminded that a complaint contains only charges and is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  The drug conspiracy charge is punishable by up to life in federal prison.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

Earlier this week, Deputy Attorney General (DAG) Lisa O. Monaco traveled to Chicago for a series of engagements that focused on the integrity of the Department of Justice as well as the department’s ongoing partnerships with law enforcement and community leaders to promote public safety. 

On Monday, DAG Monaco returned to her alma mater, the University of Chicago Law School where she met with a group of law students to talk about her career path and the role the Department of Justice serves in maintaining the rule of law. She also met separately with a group of students from the Institute of Politics (IOP) to highlight the importance of public service.

That evening, the DAG participated in the IOP’s Speaker Series, for a discussion on how the Department of Justice “enforces the rule of law in a highly polarized world” and how the department is working to defend our democracy, including with respect to the January 6th investigation. The DAG fielded a range of questions about how the department strikes a balance between transparency and promoting public confidence while simultaneously protecting the integrity of the department’s investigations, consistent with its norms and traditions. A full link of the DAG’s session is available here: Justice in the Spotlight: A talk with Lisa Monaco, Deputy Attorney General of the United States. 

On Tuesday morning, the DAG participated in a conversation with University of Chicago President Paul Alivisatos to launch the University’s new Community Safety Leadership Academies, which will help to train the next generation of police and community violence intervention leaders from across America. In her conversation, the DAG emphasized the need to prioritize investments in both policing best practices and community violence intervention in order to keep our communities safe.  A full link of the DAG’s session is available here: University of Chicago Community Safety Leadership Academies. 

Afterwards, the DAG visited the headquarters of the Chicago Police Department (CPD), where she toured the Crime Prevention & Information Center (CPIC), to see how CPD is using cutting-edge technology — in coordination with federal law enforcement partners — to fight crime in Chicago. The DAG also met with CPD Superintendent David O. Brown and his First Deputy Superintendent Eric Carter to discuss trends in violent crime as well as the coordinated efforts between state, local and federal law enforcement to protect Chicago communities.

From there, the DAG went to the U.S. Attorney’s Office for the Northern District of Illinois (NDIL), where she met with U.S. Attorney John Lausch and his leadership team, and where she received a series of case briefings from NDIL attorneys. The DAG also convened a roundtable with state, local and federal law enforcement leaders where they discussed a variety of public safety issues and how to best partner together to address them.

The DAG’s trip concluded with an all-hands meeting at the U.S. Attorney’s Office, where she had a chance to hear from and talk with the dedicated men and women of the U.S. Attorney’s Office for the Northern District of Illinois.

CHICAGO — The former controller of a Chicago-based insurance company has been sentenced to four years in federal prison for embezzling nearly $6 million in company funds.

From October 2018 to June 2020, KEVIN J. MIX authorized approximately 42 wire transfers totaling more than $5.8 million from Insureon to his personal bank accounts and the accounts of shell companies that he created.  At the time, Mix was Insureon’s controller and responsible for managing the company’s accounting operations.  Mix attempted to conceal the fraudulent transfers by making false entries in the company’s records, creating fake emails, and making false statements to company representatives and the company’s bank. 

Mix used the stolen money to purchase, among other things, several real estate parcels in the Chicago area and Ohio, Mercedes-Benz and Audi automobiles, multiple diamonds and gold bars, and membership for a private charter jet service. 

Mix, 43, of Chicago, pleaded guilty last year to a federal wire fraud charge.  In addition to the prison term, U.S. District Judge Joan Humphrey Lefkow on Tuesday ordered Mix to pay $5,845,427 in restitution.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government was represented by Assistant U.S. Attorney Matthew Schneider.

CHICAGO — A man was sentenced today to more than a year in federal prison for inciting rioting involving multiple incidents of property damage and looting in Chicago in the summer of 2020.

JAMES MASSEY, 23, of Chicago, pleaded guilty earlier this year to a federal charge of inciting and participating in a riot.  U.S. District Judge Matthew F. Kennelly imposed the 15-month prison sentence and ordered Massey to pay $185,148 in restitution.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorney Aaron R. Bond.

“Anyone involved in destructive behavior in Chicago – such as rioting – should expect to be held accountable,” said U.S. Attorney Lausch.  “Our office will continue to work with the FBI, CPD, and our other law enforcement partners to prosecute rioters and others engaged in violent crime.”

“Inciting riots and other unlawful activity are both irresponsible and reckless, and the FBI will continue to work tirelessly with police and prosecutorial partners to ensure public safety is not compromised,” said FBI SAC Buie.

Massey admitted in a plea agreement that on Aug. 9, 2020, he posted multiple videos and messages on Facebook calling for people to travel to downtown Chicago to engage in property damage and looting.  In one of the videos, Massey stated, “Y’all ready? I sent everybody the location to link up at bro.  I trying to get something.  I need to hit a couple stores.”  In another video, Massey stated, “Fitting to go [expletive] them up.  I ain’t missing out.  I am ready to steal.”

Massey admitted in the plea agreement that he and at least three other individuals damaged four stores in the downtown and Near North Side areas of Chicago.

CHICAGO — Two siblings who operated a suburban Chicago manufacturing company have pleaded guilty in federal court to knowingly hiring undocumented workers.

KENNETH KUZELKA, 64, of Chicago, pleaded guilty Thursday to conspiracy to commit alien harboring for purposes of financial advantage, and his sister, KARI KUZELKA, 59, of Elgin, Ill., pleaded guilty to engaging in a pattern and practice of hiring unauthorized aliens.

The Kuzelkas admitted in plea agreements that in 2017 they schemed with the executive vice president of a Chicago staffing company to knowingly re-hire approximately 20 undocumented workers at KSO MetalFab Inc., a sheet metal fabrication company in Streamwood, Ill.  The undocumented workers were previously employed by the company but had been terminated after agents from Homeland Security Investigations (HSI) served the company with notice of suspected violations regarding the workers’ employment-verification documents.  The staffing agency facilitated the undocumented workers’ return to the company.

The conspiracy charge against Kenneth Kuzelka is punishable by up to ten years in federal prison, while Kari Kuzelka faces up to six months.  U.S. District Judge Sara L. Ellis set sentencings for Aug. 2, 2022.

The Kuzelkas’ plea agreements were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Angie Salazar, Special Agent-in-Charge of the HSI Chicago office.  The U.S. Department of Labor and U.S. Social Security Administration provided valuable assistance.  The government is represented by Assistant U.S. Attorney Ashley A. Chung.

The staffing agency executive vice president – SERGIO BADANI of St. Charles, Ill. – previously pleaded guilty to his role in the scheme and was sentenced to two years of probation and fined $15,000.  A fourth defendant – KEITH KUZELKA of Elgin – also pleaded guilty and was sentenced to a year of probation.

CHICAGO — A former college dean has been sentenced to a year in federal prison for embezzling more than $650,000 from a national student organization working to improve minority representation in the pharmacy industry.

While serving as the volunteer Executive Director of the student association, CARMITA COLEMAN withdrew cash and issued checks from the group’s bank accounts for her personal benefit.  Coleman used debit cards linked to the organization’s accounts to make various personal purchases, including for trips to the Caribbean.  She attempted to cover up the fraud by submitting false and misleading reports that concealed the withdrawals.  When a new individual was appointed to replace Coleman as Executive Director, Coleman knowingly delayed turning over access to the organization’s bank accounts so that she could continue spending the money for her personal benefit.

During the fraud scheme, which lasted from 2011 to 2016, Coleman separately worked as a dean and professor at various colleges of pharmacy.

Coleman, 50, of Frankfort, Ill., pleaded guilty earlier this year to a federal wire fraud charge.  In addition to the year-and-a-day prison sentence, U.S. District Judge Matthew F. Kennelly on Wednesday ordered Coleman to pay the remaining restitution of $490,528.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. 

“Coleman’s offense is particularly egregious because she was supposed to be the adult in the room — the faculty member entrusted with overseeing the student organization’s accounts – but instead used the organization’s funds as her own piggy bank,” Assistant U.S. Attorney L. Heidi Manschreck argued in the government’s sentencing memorandum.  “As a result of her scheme, the organization was deprived of funds that were supposed to support its laudable mission, and not to line Coleman’s pockets.”

CHICAGO — The former mayor of Crestwood, Ill., was sentenced today to a year in federal prison for improperly soliciting and receiving benefits from an individual with a financial interest in a red-light camera company that provided services to the Chicago suburb.

LOUIS PRESTA, 71, of Crestwood, pleaded guilty last year to one count of using a facility in interstate commerce in aid of bribery and official misconduct, and one count of filing a false income tax return.  U.S. District Judge Thomas M. Durkin imposed the year-and-a-day sentence after a hearing in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.

“Public corruption is an extremely serious offense that erodes the public’s trust in all levels of government,” Assistant U.S. Attorney James P. Durkin argued in the government’s sentencing memorandum.  “It tarnishes by association the honest public servants who view their jobs through the lens of what is in the public interest, not their own self-interest.”

According to Presta’s plea agreement with the government, the red-light camera company provided camera services to Crestwood that enabled the municipality to issue tickets to motorists for certain traffic violations.  While the company was attempting to provide additional such services to Crestwood, then-Mayor Presta asked for and accepted benefits from the individual with a financial interest in the company.  Presta told the individual that the percentage of red-light traffic violations that Presta approved would remain high or increase – in exchange for a cash payment to Presta from the individual, the plea agreement states. 

The plea agreement describes a Feb. 27, 2018, phone call in which Presta updated the individual on the higher percentage of red-light traffic violations that Crestwood approved the previous week.  During the call, Presta stated, “We’re starting to get the numbers again… you got a new sheriff in town.”  Shortly after that call, Presta on March 7, 2018, received a $5,000 cash bribe from the individual.  When subsequently questioned by federal law enforcement about his receipt of the $5,000 bribe payment, Presta falsely stated that he neither asked for nor received the $5,000 bribe.

In addition to the bribery scheme, Presta admitted in the plea agreement that he willfully filed a false personal income tax return for the calendar year 2015.

CHICAGO — Two brothers from Michigan were among three men indicted on federal fraud charges for allegedly scheming to create and sell false works of art and memorabilia.

An indictment unsealed today in U.S. District Court in Chicago accuses DONALD HENKEL of altering and applying false autographs or signatures to paintings and memorabilia, including sports, Hollywood, and music collectibles, to make the items appear genuine or more valuable to potential buyers, including art galleries, auction houses, and individuals.  The indictment alleges that Donald Henkel falsely added signatures of artists such as Ralston Crawford and George Ault to paintings that he knew were not created by those artists, and then schemed with his brother, MARK HENKEL, and others to fraudulently present the works as genuine.  Donald Henkel and bogus “straw sellers” recruited by Mark Henkel allegedly provided a false provenance, or history, for numerous items, including a painting by Gertrude Abercrombie and baseballs or bats purportedly signed by Lou Gehrig, Babe Ruth, Honus Wagner, and Cy Young, as a means to falsely portray the items as genuine to potential buyers.  One of the alleged straw sellers – RAYMOND PAPARELLA – schemed to conceal the Henkels’ involvement with the items in an effort to pass them off as genuine, the indictment states.

The alleged fraud scheme began in 2005 and continued until 2020.  Many of the forged items were sold for more than $100,000 based on the false histories provided by the Henkels or the straw sellers, the indictment states.

The indictment charges mail fraud or wire fraud against Donald Henkel, 61, of Cedar, Mich., Mark Henkel, 66, of Ann Arbor, Mich., and Paparella, 59, of Boca Raton, Fla.  Mark Henkel faces an additional charge of witness tampering for allegedly corruptly persuading a co-schemer to make a false statement to law enforcement.

The three defendants pleaded not guilty today during arraignments in federal court in Chicago.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by the U.S. Attorney’s Office for the Western District of Michigan, and FBI Field Offices in Detroit, Mich., and Miami, Fla.  The government is represented by Assistant U.S. Attorney Ashley A. Chung.

The public is reminded that an indictment is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Each count in the indictment is punishable by up to 20 years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A former paralegal for a Chicago law firm has been indicted for allegedly embezzling more than $600,000 from bankruptcy estate accounts.

BECKY LOUISE SUTTON fraudulently embezzled the funds from 2009 to 2018 while working on bankruptcy matters at the law firm, according to an indictment returned Wednesday in U.S. District in Chicago.  Sutton orchestrated the fraudulent transfers of bankruptcy funds from fiduciary bank accounts intended for creditors to accounts Sutton controlled, including her personal bank account, credit card account, student loan account, and mortgage account, the indictment states.  In one instance, Sutton used a company with a name similar to a true creditor to disguise her fraudulent diversion of the funds, the indictment states. 

The indictment charges Sutton, 66, of Austin, Texas, and formerly of Park Forest, Ill., with three counts of wire fraud and three counts of embezzlement from the estate of a debtor.  The indictment seeks forfeiture from Sutton of $611,263 in alleged criminally derived proceeds.  Arraignment in federal court in Chicago has not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by the U.S. Trustee Program.  The government is represented by Assistant U.S. Attorney Kartik K. Raman.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. 

Each wire fraud count is punishable by up to 20 years in federal prison, while each embezzlement count carries a maximum sentence of five years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — Three men involved in an exchange of gunfire in a store parking lot in a Chicago suburb have been indicted on federal firearm violations.

The indictment in U.S. District Court in Chicago accuses ANTHONY HAYES and JAMARI WILLIAMS of each firing multiple rounds at REGINALD DANIELS in the store parking lot in Calumet City, Ill., on Aug. 9, 2021.  Daniels and another individual with him were wounded.  Daniels drew a gun from his waistband and fired multiple rounds at Hayes and Williams as they ran away, the indictment states.  One of Daniels’s shots struck an individual who happened to be driving near the store and was not involved in the exchange of gunfire, the indictment states.

Three days after the shootings, law enforcement conducted a court-authorized search of Hayes’s residence and discovered eight firearms, including the handguns used by Hayes and Williams in the shooting of Daniels and the individual with him, the indictment states.

The indictment charges Hayes, 24, of Dolton, Ill., Williams, 23, of Chicago, and Daniels, 40, of Chicago, with illegal possession of a firearm as previously convicted felons.  Hayes also faces additional counts of illegal possession of machine guns.  All three defendants are in law enforcement custody.  Daniels is scheduled to appear for a detention hearing today at 3:00 p.m. before U.S. Magistrate Judge Gabriel A. Fuentes.  Federal court appearances for Hayes and Williams have not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.  Substantial assistance was provided by the Calumet City Police Department, U.S. Marshals Service, South Suburban Major Crimes Task Force, South Suburban Emergency Response Team, Cook County Sheriff’s Office, and Illinois State Police.  The government is represented by Assistant U.S. Attorney Paul Mower.

The public is reminded that an indictment is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A central Illinois man has been sentenced to 16 years in federal prison for attempting to traffic cocaine in Chicago.

A jury last year convicted TEKOA Q. TINCH, 34, of Bloomington, Ill., of attempting to possess cocaine with the intent to distribute.  Tinch in May 2018 attempted to buy a kilogram of cocaine from an individual in a grocery store parking lot in the Little Village neighborhood of Chicago.  Unbeknownst to Tinch, the cocaine was fake and the seller was an undercover law enforcement officer.

U.S. District Judge Andrea R. Wood imposed the sentence Tuesday after a hearing in federal court in Chicago.  Judge Wood also found that Tinch directed an individual to purchase two firearms for Tinch in April 2018, and that those firearms were in the vehicle when Tinch drove to the meeting with the undercover officer.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; and David Brown, Superintendent of the Chicago Police Department.

“For many years the City of Chicago and other areas in the Northern District of Illinois have been plagued by drug trafficking, along with the violent crime that often accompanies drug trafficking,” Assistant U.S. Attorney John D. Mitchell argued in the government’s sentencing memorandum.  “While drug trafficking is always a serious crime, the circumstances of defendant’s offense of conviction are particularly serious.”

ROCKFORD — An Ogle County man was sentenced today to nearly four years in federal prison for robbing a bank in Rochelle, Ill.

RODNEY BEESE, 64, of Rochelle, Ill., admitted in a plea agreement that on July 6, 2021, he entered Central Bank Illinois, 340 May Mart Dr., approached the teller counter, and presented a note demanding $20’s, $50’s, and $100’s from the drawer.  Beese received $100 in cash from the teller and then left the bank.

U.S. District Judge Iain D. Johnston imposed a 46-month prison sentence after a hearing in federal court in Rockford.

The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government was represented by Assistant U.S. Attorney Robert S. Ladd.

ROCKFORD — A Loves Park woman was sentenced today to three years in federal prison for fraudulently obtaining more than $1 million from her employer.

In addition to the prison term, U.S. District Judge Iain D. Johnston also ordered TAMMY E. MOORE, 55, to pay more than $1 million in restitution.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The Loves Park Police Department assisted in the investigation.  The government was represented by Assistant U.S. Attorney Scott R. Paccagnini.

Moore was an office manager for a company in Loves Park that made custom components for a variety of industries.  Moore admitted in a plea agreement that from 2012 to 2020, she fraudulently obtained more than $1 million from the company.  Moore issued company checks to herself and her husband’s business from the company’s account, forged the signature of the company’s owner on checks, deposited the checks into her personal bank account and her husband’s business account for her personal benefit, and then initiated online transfers to move the money.  Moore concealed these transactions by making it appear as though the checks were for legitimate business purposes and by deleting the company’s records of the forged checks.

CHICAGO — On April 13, 2015, the U.S. Attorney’s Office for the Northern District of Illinois announced a joint federal and state investigation into the Oct. 20, 2014, fatal shooting of Laquan McDonald.  On Nov. 24, 2015, the Office announced that the investigation remained active and ongoing.  The Office conducted a thorough and independent investigation with the assistance of its federal, state, and local investigative partners, including the Cook County State’s Attorney’s Office, Federal Bureau of Investigation, and the Chicago Independent Police Review Authority and its successor, the Civilian Office of Police Accountability.

In November 2015, the Cook County State’s Attorney’s Office, in consultation with the U.S. Attorney’s Office, proceeded with murder charges against former Chicago Police Officer Jason Van Dyke in the Circuit Court of Cook County.  Experienced and independent prosecutors led the state prosecution, resulting in Mr. Van Dyke’s historic convictions of second-degree murder and sixteen counts of aggravated battery with a firearm.  On Jan. 18, 2019, Mr. Van Dyke was sentenced to 81-months’ imprisonment.

Today, John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, announced that the U.S. Attorney’s Office will not pursue a successive prosecution of Mr. Van Dyke on federal criminal charges.  The decision not to pursue a federal prosecution is consistent with Department of Justice policy and was made in consultation with Mr. McDonald’s family.  U.S. Attorney Lausch has spoken with a representative of Mr. McDonald’s family on multiple occasions over the past three years, including recently, to discuss the factors the Department of Justice considers when deciding to bring a second prosecution.  The family was in agreement not to pursue a second prosecution, and the Office respects their position. 

While much of the evidence presented at Mr. Van Dyke’s state trial was developed through a joint federal and state investigation, a federal trial would not be a retrial of the state case.  There is no general murder charge under federal law that would apply.  Federal prosecutors would need to prove to a jury beyond a reasonable doubt that Mr. Van Dyke willfully deprived Mr. McDonald of a constitutional right.  To do that, prosecutors would have to prove not only that Mr. Van Dyke acted with the deliberate and specific intent to do something the law forbids, but also that his actions were not the result of mistake, fear, negligence, or bad judgment.  It requires federal prosecutors to prove beyond a reasonable doubt what Mr. Van Dyke was thinking when he used deadly force, and that he knew such force was excessive.  The federal law presents a very high bar – more stringent than the state charges on which Mr. Van Dyke was convicted.

Even if a federal trial resulted in a conviction, the federal judge imposing sentence would be obligated to consider the 81-month state sentence previously imposed, as well as other relevant factors, including the same aggravating and mitigating factors presented at Mr. Van Dyke’s extensive state-court sentencing hearing; the fact that Mr. Van Dyke served his state prison sentence with conduct entitling him under state law to be released early; and the fact that Mr. Van Dyke no longer is and never again will be a police officer.  Given these factors, there is a significant prospect that a second prosecution would diminish the important results already achieved. 

In addition to the conviction and imprisonment of Mr. Van Dyke, the murder sparked an extensive Department of Justice investigation of the Chicago Police Department, the results of which were largely incorporated into a federal consent decree requiring the Chicago Police Department to implement hundreds of meaningful police reform measures.

The public should not draw conclusions regarding how the Office is likely in the future to analyze incidents of alleged crimes by law enforcement officers.  The Department of Justice remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources required to ensure that credible allegations of civil rights violations are thoroughly examined.

CHICAGO — With the arrival of Tax Day, the U.S. Attorney’s Office and IRS Criminal Investigation Division today reminded taxpayers to accurately file their returns and promptly pay any money owed.

Tax evaders face criminal charges, including potential incarceration, as well as civil penalties, and they remain responsible for all taxes and interest due, said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.

“Taxes are how governments provide essential services,” said U.S. Attorney Lausch.  “Tax offenses are neither victimless nor without consequence.  Our office strives to preserve the integrity of the federal tax system through vigorous enforcement of the internal revenue laws.”

“2021’s Tax Day is here, and it is important for people to have confidence that when they pay their taxes, their neighbors and co-workers are doing the same,” said IRS-CI SAC Campbell.  “If you have someone else preparing your tax return, make sure they are a reputable return preparer.  Dishonest tax professionals use a variety of methods to cheat the government.  Remember, it is your responsibility to know what is on your income tax return.  You are ultimately responsible for what gets filed with the IRS.”

Several Chicago-area defendants have recently been charged in federal court for a variety of tax violations, exemplifying the serious nature of tax offenses:

HERBERT O. MCDOWELL III, 79, of Evanston, Ill., was indicted last week on tax evasion charges for allegedly failing to pay individual and corporate income taxes.  The indictment accuses McDowell of, among other things, shielding his individual income from 2015 to 2019 by causing money to be paid to his company – United Preferred Companies of Northfield, Ill. – but spending it for his personal benefit.  Despite receiving more than $2.9 million in gross income in those years, McDowell failed to file a tax return or pay taxes on the income that he earned.  McDowell’s arraignment is scheduled for Tuesday at 11:00 a.m. before U.S. Magistrate Judge Maria Valdez.  The government in McDowell’s case is represented by Assistant U.S. Attorney Patrick J. King, Jr.

Professional tax preparer ADAM R. OLIVA, 40, of Cape Coral, Fla., and formerly of Rolling Meadows, Ill., was charged last month in connection with an alleged scheme to defraud his clients by using FDIC-insured financial institutions as a conduit to funnel more than $1 million in client funds to himself instead of the IRS.  Oliva also allegedly directed the IRS to send some of his clients’ tax refunds to himself rather than to the clients.  Oliva has pleaded not guilty to the charges.  A status hearing in federal court in Chicago is scheduled for May 12, 2022.  The government in Oliva’s case is represented by Assistant U.S. Attorney Rick Young.

YOUSEF ABU ALHAWA, 47, of Lockport, Ill., was charged this month with three counts of filing a false income tax return.  Alhawa allegedly filed false returns from 2015 to 2017.  Alhawa, who owned a grocery store in the Chicago Lawn neighborhood of Chicago, was also charged with multiple counts of wire fraud for allegedly fraudulently redeeming or causing to be redeemed benefits under the Supplemental Nutrition Assistance Program (“SNAP”) and the Special Supplemental Nutrition Program for Women, Infants, and Children (“WIC”).  From 2011 to 2019, Alhawa redeemed more than $10.9 million in SNAP benefits and more than $3.6 million in WIC benefits through his grocery store, the indictment states.  Alhawa has pleaded not guilty to the charges.  A status hearing in federal court in Chicago is scheduled for May 18, 2022.  The government in Alhawa’s case is represented by Assistant U.S. Attorney Paul Mower.

According to the IRS, taxpayers should file or request an extension of time to file and pay any taxes they owe by today’s deadline to avoid penalties and interest.  For more information, the IRS encourages taxpayers to visit the official IRS website.

CHICAGO — A former U.S. Postal Service employee in Chicago has been indicted on federal charges for allegedly stealing government stimulus checks from the mail.

OLIVIA L. BRYANT, 33, of Chicago, is charged with three counts of theft from the U.S. mail.  Bryant pleaded not guilty to the charges during her arraignment Monday in federal court in Chicago.  A status hearing is set for May 13, 2022, at 1:00 p.m., before U.S. District Judge John Robert Blakey.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Andre Martin, Special Agent-in-Charge of the Central Area Field Office of the U.S. Postal Service Office of Inspector General; and J. Russell George, Inspector General of the Treasury Department Inspector General for Tax Administration (TIGTA).

The indictment accuses Bryant of stealing three pieces of mail from her route in Chicago in March of last year.  Special Assistant U.S. Attorney Malgorzata Tracz Kozaka advised the Court during arraignment that the stolen mail contained government stimulus checks.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

Each count in the indictment is punishable by a maximum sentence of five years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A federal grand jury has indicted a suburban Chicago man for allegedly trafficking cocaine and illegally possessing a loaded handgun.

An indictment returned in U.S. District Court in Chicago charges GILBERTO ALMANZA, 44, of North Chicago, Ill., with two counts of distribution of a controlled substance, one count of possession of a controlled substance with the intent to deliver, and one count of possessing a firearm in furtherance of drug-trafficking activities. 

The charges in the indictment carry a mandatory minimum sentence of 15 years in federal prison and a maximum of life.  Almanza is currently detained in federal custody.  Arraignment is set for Friday at 1:30 p.m. before U.S. District Judge Matthew F. Kennelly.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the DEA.  The government is represented by Assistant U.S. Attorneys Megan DeMarco and A.J. Dixon.

According to the indictment and a criminal complaint previously filed in the case, Almanza distributed approximately 46 kilograms of cocaine on Sept. 2, 2021.  The delivery occurred in a restaurant parking lot in Bolingbrook, Ill., the charges allege.  Unbeknownst to Almanza, the individual to whom Almanza delivered the cocaine was cooperating with law enforcement, the charges allege.

A second drug deal allegedly occurred last month at Almanza’s residence.  Another individual surreptitiously cooperating with law enforcement bought approximately half a kilogram of cocaine from Almanza, the charges allege.  Law enforcement conducted a court-authorized search of Almanza’s residence on March 17, 2022, and discovered approximately two kilograms of cocaine and the loaded handgun, the charges allege.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

ROCKFORD — A federal jury in Rockford today convicted an Illinois man in connection with the killing of Special Deputy U.S. Marshal Jacob Keltner.

The jury found FLOYD E. BROWN, 42, of Springfield, Ill., guilty of second-degree murder of a federal officer, attempting to kill additional federal officers, assault of federal officers, and multiple firearm offenses.  The convictions carry a maximum sentence of life in prison.  U.S. District Judge Matthew F. Kennelly set sentencing for July 19, 2022, at 1:00 p.m.

The convictions were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI.  Valuable assistance was provided by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Marshals Service, McHenry County Sheriff’s Office, Rockford Police Department, Winnebago County Sheriff’s Office, Bloomington Police Department, Loves Park Police Department, Lincoln Police Department, Logan County Sheriff’s Office, and Illinois State Police.  The government is represented by Assistant U.S. Attorneys Talia Bucci, Scott Paccagnini, and Ronald DeWald.

Evidence presented at the two-week trial revealed that Special Deputy Keltner was fatally wounded on March 7, 2019, when members of the U.S. Marshals Service Great Lakes Regional Fugitive Task Force and other law enforcement officers attempted to execute a warrant for Brown’s arrest at a Rockford hotel.  Brown was wanted on a residential burglary charge.  Special Deputy Keltner served as a McHenry County Sheriff’s deputy and was a sworn member of the task force. 

When the officers attempted to gain access to Brown’s third-floor hotel room, he fired ten shots through the door and nearby walls, narrowly missing a Deputy U.S. Marshal and two Special Deputy U.S. Marshals.  Brown then jumped out of a window and fired a shot that fatally struck Special Deputy Keltner, who was covering the exterior of the hotel.  Brown was arrested several hours later near Lincoln, Ill., after a high-speed pursuit.

ROCKFORD — A federal grand jury in Rockford has returned an indictment charging two defendants - TONY CLAPP, 58, and GREGORY BOLLMAN, 48 - with conspiracy to possess 50 grams or more of methamphetamine with the intent to distribute.

Clapp was also charged with attempted possession of 50 grams or more of methamphetamine with the intent to distribute.  He is currently on supervised release stemming from federal distribution of cocaine charges.  

The indictment was returned on Tuesday.  Arraignments in U.S. District Court in Rockford have not yet been scheduled. 

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the DEA.  Substantial assistance was provided by the Illinois State Police, Illinois State Police Blackhawk Area Task Force, the Whiteside County Sheriff’s Office, and the Nebraska State Police.  The government is represented by Assistant U.S. Attorney Robert Ladd.

The public is reminded that an indictment contains only charges and is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

Clapp faces a mandatory minimum sentence of 15 years in prison and a maximum  of life, while Bollman faces a mandatory minimum sentence of 10 years and a maximum of life.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines. 

CHICAGO — A man has been sentenced to nine years in federal prison for illegally possessing a loaded handgun on a Chicago street.

CIPRIANO RIVERA illegally possessed the gun on Sept. 28, 2019, near an alley in Chicago’s West Town neighborhood.  Rivera was driving his sport-utility vehicle when he fired several shots at an individual who was walking through the alley.  Neither the individual nor anyone else was wounded.  While speeding away from the area, Rivera tossed the gun out of the car window.  Chicago Police officers a short time later pulled over the SUV and arrested Rivera.  Bystanders near the scene of the shooting found the gun and alerted police.

Rivera, 36, of Villa Park, Ill., pleaded guilty last year to a federal charge of illegal possession of a firearm.  Rivera had previously been convicted of multiple felony firearm offenses in state court and was prohibited by federal law from possessing the gun. 

U.S. District Judge Ronald A. Guzman imposed the prison sentence Tuesday after a hearing in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; and David Brown, Superintendent of the Chicago Police Department.

“Defendant fired his gun to kill the man walking in the alley,” Assistant U.S. Attorney Jason Yonan argued in the government’s sentencing memorandum.  “These actions were egregious and placed numerous members of the public at grave risk, including the person defendant shot at and the people living nearby.”

Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy.  In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.

A 21-count superseding indictment unsealed Wednesday charges 12 individuals with conspiring to violate federal firearms statutes, including engaging in the business of dealing in firearms without a license; transporting and receiving firearms into another state; making false statements to a federally licensed firearm dealer; conspiring to possess firearms in furtherance of drug trafficking crimes and to use and carry firearms in relation to crimes of violence; and conspiring to commit money laundering, as well as other related substantive offenses. 

“The Justice Department recognizes that fighting violent crime requires approaches tailored to the needs of individual communities,” said Attorney General Merrick B. Garland. “But gun violence can be a problem that is too big for any one community, any one city, or any one agency to solve. That is why our approach to disrupting gun violence and keeping guns out of the hands of criminals rests on the kind of coordination you see here today.”

Wednesday morning, agents from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), IRS-Criminal Investigation (CI) and officers from the Chicago Police Department and the Davenport, Iowa, Police Department began arresting those charged in the indictment. As of this morning, six of those charged are in custody and the remaining defendants are currently being sought by law enforcement. 

The U.S. Attorney’s Office for the Northern District of Illinois will handle the initial appearances by all defendants before they are transferred to the Middle District of Tennessee for further proceedings. 

In July 2021, Demarcus Adams, 21; Jarius Brunson, 22; and Brandon Miller, 22, were enlisted members of the U.S. Army and stationed at the Fort Campbell military installation in Clarksville, Tennessee, and were charged by indictment with crimes stemming from the purchase and transfer of dozens of firearms to the streets of Chicago. In addition to these defendants, this superseding indictment charges the following nine individuals in the conspiracies and other substantive offenses: Blaise Smith, 29; Rahaeem Johnson, aka Rah, 24; Bryant Larkin, 33; Corey Curtis, 26; Elijah Tillman, 24; Lazarus Greenwood, aka Zarro, 23; Dwight Lowry, aka Ike, 41; Dreshion Parks, 25, all of Chicago; and Terrell Mitchell, 27, of Davenport, Iowa.

The indictment alleges that the new defendants are members of the Gangster Disciples street gang in the Pocket Town neighborhood of Chicago. Between December 2020 and April 2021, the defendants conspired to purchase and deliver over 90 illegally obtained firearms to the Chicago area to facilitate the ongoing violent disputes between the Pocket Town Gangster Disciples and their rival gangs. 

The indictment further alleges the methods used by co-conspirators to purchase firearms from federally licensed firearms dealers in the Clarksville, Tennessee and Oak Grove, Kentucky areas, which included communicating via text messages to coordinate the purchase and delivery of firearms to the Chicago area; providing false information on firearms purchase application forms; and using online apps to facilitate payment for the illegal transfer of firearms. On one occasion, the indictment alleges that in addition to several firearms available for sale, Brandon Miller had 1,000 rounds of 9mm ammunition available for purchase. 

If convicted, the defendants face up to 20 years in prison on one or more of the charged counts.

The announcement was made by Attorney General Merrick B. Garland; U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee; U.S. Attorney John Lausch for the Northern District of Illinois; Special Agent in Charge Mickey French of the ATF Nashville Field Division; Special Agent in Charge Kristen de Tineo of the ATF Chicago Field Division; Karen Wingerd, Assistant Special Agent in Charge of IRS-CI, Charlotte Field Office; and Assistant Director Guy Surian for Investigations and Operations, U.S. Army - Criminal Investigation Division (CID).

This case is being investigated by the ATF-Nashville, Chicago, and Des Moines Divisions; the U.S. Army-CID; the IRS-CI - Charlotte and Chicago Field Offices; the Clarksville, Tenn. Police Department; the Chicago Police Department and the Chicago Crime Gun Intelligence Center; and the Davenport, Iowa Police Department. Assistant U.S. Attorneys Josh Kurtzman and Kathryn Risinger are prosecuting the case. 

An indictment is merely an accusation. All defendants are presumed innocent until proven guilty in a court of law. 

CHICAGO — A Southern California businessman has been sentenced to a year in federal prison for illegally brokering the sales of embargoed defense articles from the People’s Republic of China and filing a false corporate tax return.

TUQIANG XIE, also known as “Tony Xie,” 60, of Irvine, Calif., pleaded guilty in 2019 to one count of violating the Arms Export Control Act and one count of filing a false tax return.  U.S. District Judge Charles R. Norgle imposed the year-and-a-day prison sentence Wednesday after a hearing in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division; and Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations.  Substantial assistance was provided by the Central Field Office of the Defense Criminal Investigative Service of the U.S. Department of Defense’s Office of Inspector General, and the IRS Criminal Investigation Division in Chicago.  The government was represented by Assistant U.S. Attorney Diane MacArthur of the Northern District of Illinois and Trial Attorney Matthew R. Hoffman of the Tax Division.

Xie admitted in a plea agreement that through his company, Bio-Medical Optics LLC of Irvine, Calif., he served as a broker for the shipment of defense articles on the U.S. Munitions List and the U.S. Munitions Import List.  The items on these lists are regulated components and systems used in U.S. military equipment.  Federal law requires that individuals involved in the business of manufacturing or exporting defense articles must obtain a license and register with the Directorate of Defense Trade Controls at the U.S. Department of State.  Xie never obtained a license or registered with the DDTC.  Moreover, the U.S. since 1989 has imposed an arms embargo on the PRC, restricting imports or exports of arms between the two countries.

Despite the arms embargo and the lack of a license or registration, Xie admitted in his plea agreement that in 2014 and 2015 he located a manufacturer in the PRC to produce defense articles for one of his clients.  Over time, Xie earned hundreds of thousands of dollars in commissions or fees based on his role in shipments to and from the PRC.

The tax charge pertained to Xie’s filing a false corporate tax return for Bio-Medical Optics for 2013.  Xie also admitted in the plea agreement that he filed false corporate tax returns for Bio-Medical Optics for 2009 through 2012, causing a total tax loss to the IRS of more than $100,000.

CHICAGO — A federal judge today sentenced a suburban Chicago woman to a year in prison for using insider information obtained from her husband to purchase shares of a company ahead of its acquisition by the husband’s employer.

DENISE GREVAS, 60, of Evanston, Ill., pleaded guilty last year to a securities fraud charge.  In addition to the year-and-a-day prison sentence, U.S. District Judge Harry D. Leinenweber fined Grevas $100,000.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The U.S. Securities and Exchange Commission, which filed a civil enforcement action against Grevas, provided valuable assistance.  Assistant U.S. Attorneys Jared Hasten and Jason Yonan represented the government in the criminal case.

Grevas admitted in a plea agreement that she made $286,960 in illegal profits from the purchase and sale of securities in a Washington state-based pharmaceutical company, which was a target for acquisition and later acquired by a foreign pharmaceutical company that employed Grevas’s husband.  Grevas used material, non-public information about the expected acquisition to purchase shares in the Washington company ahead of a public announcement of the acquisition on Sept. 16, 2019.  After the announcement, the Washington company’s stock price increased and Grevas sold the shares for the profit.

ROCKFORD — A Rockford man has been sentenced to six years in federal prison for illegally possessing loaded handguns.

JAMES PETERSON, 41, last year illegally possessed a .380-caliber semi-automatic handgun and a .45-caliber handgun.  As a previously convicted felon, Peterson was not lawfully allowed to possess a firearm.

U.S. District Judge Iain D. Johnston imposed the prison sentence Friday after a hearing in federal court in Rockford.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations. Substantial assistance was provided by the Illinois State Police’s State Line Area Narcotics Team (SLANT), the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the U.S. Drug Enforcement Administration.

The government was represented by Assistant U.S. Attorney Robert S. Ladd.

CHICAGO — A federal jury has convicted a suburban Chicago man of laundering illegal narcotics proceeds on behalf of drug traffickers in Mexico.

In the summer and fall of 2017, HUAZHI HAN schemed with an individual in Mexico to facilitate the receipt of more than $1 million in narcotics proceeds in the United States.  Han picked up the drug money from others in the Chicago area and used the cash to purchase and then re-sell electronic devices.  Han and another individual then caused the laundered money to be sent back to the traffickers in Mexico.

In November 2017, Han attempted to receive approximately $100,000 in narcotics money from a drug dealer.  At the time, Han was in possession of approximately $200,000 in cash, a firearm, and two loaded magazines.  Law enforcement then searched Han’s residence and discovered a money counter, multiple firearms, more than $1.1 million in cash concealed in cookie tins inside of a drop ceiling in the basement, and approximately $200,000 in cash in vacuum-sealed packaging in the basement closet.  In June 2018, law enforcement arrested Han after he received approximately $192,000 in money that was represented to Han to be drug money.  At that time, Han was again in possession of a loaded firearm.

After a two-week trial in U.S. District Court in Chicago, the jury on Thursday convicted Han, 43, of North Riverside, Ill., on all four charges against him, including one count of conspiracy to commit money laundering, one count of attempted concealment money laundering, one count of conducting a financial transaction with funds represented to be drug proceeds, and one count of operating an unlicensed money transmitting business.  In addition to the guilty verdicts, the jury returned a special verdict as to the forfeiture of criminally derived property, finding that Han should forfeit approximately $1.5 million in cash, four handguns, a 2016 Mercedes-Benz automobile, a 2015 Dodge Grand Caravan, and an iPhone.

Each money laundering count is punishable by up to 20 years in federal prison, while the operation of an unlicensed money transmitting business count is punishable by up to five years.  U.S. District Judge Andrea R. Wood has not yet set a sentencing date.

The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration.  Substantial assistance was provided by the IRS Criminal Investigation Division in Chicago, Chicago Police Department, Homeland Security Investigations, and the U.S. Department of Treasury, Financial Crimes Enforcement Network.  The government is represented by Assistant U.S. Attorneys Richard M. Rothblatt and Alexandra Morgan.

CHICAGO — Two brothers from Chicago have been arrested on a labor trafficking charge for allegedly forcing undocumented Mexican immigrants to work in the construction trade.

AGUSTIN ARIAS LOPEZ, 30, and JUAN ARIAS LOPEZ, 32, conspired to illegally bring two individuals from Mexico to the United States on the condition that they work for the brothers’ construction business and repay the purported costs of their transport into the U.S., according to a criminal complaint filed Thursday in U.S. District Court in Chicago.  After they arrived in Chicago, the undocumented immigrants worked 12-15 hours per day, seven days per week, in exchange for weekly payments from the Arias Lopez brothers of $800 to $1,000, the complaint states.  From that sum, the immigrants were required to pay the Arias Lopez brothers $500 per week, which the brothers claimed went towards not only the costs of the transport but also rent, as the immigrants resided in Agustin Arias Lopez’s unfinished basement in the Englewood neighborhood of Chicago, the complaint states.

The complaint alleges that the Arias Lopez brothers threatened the immigrants with violence if they did not pay the money.  On one occasion in November 2021, Agustin Arias Lopez allegedly pointed a handgun at one of the immigrants.

The complaint charges the Arias Lopez brothers with conspiracy to knowingly bring, transport, harbor, and induce aliens to come to, enter, remain in, and reside in the U.S.   The brothers were arrested Thursday.  A detention hearing in federal court in Chicago is set for March 28, 2022, at 2:00 p.m.

The complaint and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago; and Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations.  The government is represented by Assistant U.S. Attorney Charles W. Mulaney.

The public is reminded that a complaint is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  The charge in the complaint is punishable by up to ten years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

ROCKFORD — A Loves Park, Ill., investment advisor has been sentenced to four years and four months in federal prison for financial fraud.

NASEEM SALAMAH, 41, fraudulently obtained a total of more than $968,000 from the accounts of three customers.  Salamah told the customers that he needed to move the money to diversify their assets, when, in fact, Salamah deposited the money into a bank account that he controlled.  Salamah then used the money for his own benefit and without the customers’ knowledge or consent. 

In addition to the prison sentence, U.S. District Judge Iain D. Johnston on Wednesday ordered Salamah to pay restitution to the victims in the amount of $968,582.12.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The U.S. Securities and Exchange Commission, which filed a civil enforcement action against Salamah, provided valuable assistance.  The government was represented by Assistant U.S. Attorney Scott R. Paccagnini.

CHICAGO — A man has been sentenced to 25 years in federal prison for violently sex trafficking two children in the Chicago area and Wisconsin.

In late 2019 and early 2020, DAVID L. SMITH took sexually explicit photographs of the children, who at the time were 16 and 17 years old, and posted them in commercial sex advertisements on the websites SkipTheGames and MegaPersonals.  He then arranged for the children to meet customers in hotel rooms, with Smith keeping all of the money that the children received.  On at least one occasion, Smith hit the 17-year-old victim in the face after she mistakenly accepted fake money from a customer.  On another occasion, Smith hit the 16-year-old victim in the face after he learned that the girl had contacted her mother.

Smith, 28, of Milwaukee, Wis., pleaded guilty last year to a federal sex trafficking charge.  In addition to the prison sentence, U.S. District Judge John J. Tharp, Jr., on Friday ordered Smith to pay $50,000 in restitution to each of his victims.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by the Oak Lawn (Ill.) Police Department, FBI Milwaukee Field Office, FBI Kansas City Field Office, FBI St. Louis Field Office, Wauwatosa (Wis.) Police Department, and the Missouri State Highway Patrol.  The government was represented by Assistant U.S. Attorneys Ann Marie E. Ursini and Caitlin S. Walgamuth.

“Defendant caused his minor victims irreparable harm and trauma by causing them to engage in commercial sex on numerous occasions,” Assistant U.S. Attorney Ann Marie E. Ursini argued in the government’s sentencing memorandum.  “These victims will carry the emotional scars of the defendant’s actions for the rest of their lives.”

CHICAGO — A man involved in a shooting incident in a Chicago suburb has been sentenced to more than eight years in federal prison for illegally possessing ammunition.

LAVOYCE BAYS was charged with illegally possessing four cartridges of .40-caliber ammunition on June 15, 2019, in Markham, Ill.  Bays was involved in a dispute with a man and others at a party and later saw the man at a gas station in the south suburb.  As the man attempted to drive away from the gas station, Bays fired multiple shots and wounded him.  The victim survived the shooting.  Law enforcement recovered ammunition casings from the crime scene, which led to the federal charges.

Bays, 32, of Markham, pleaded guilty last year to a federal charge of illegal possession of ammunition by a convicted felon.  He had previously been convicted in state court of a felony criminal offense and was not legally allowed to possess ammunition or a firearm. 

U.S. District Judge Sharon Johnson Coleman on Friday imposed a 102-month federal prison sentence.  Judge Coleman found that, in addition to illegally possessing the ammunition, the government met its burden in proving Bays possessed a firearm and committed the shooting at the gas station, conduct which supported an enhanced sentence.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.  The Markham Police Department provided valuable assistance.  The government was represented by Assistant U.S. Attorney Albert Berry III.

Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy.  In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.

ROCKFORD — A South Beloit, Ill., man has pleaded guilty to a federal charge of transportation of child pornography.

DAVID WITTWER, 51, entered the guilty plea Wednesday before U.S. District Judge John Z. Lee in Rockford.  Wittwer admitted in a plea agreement that on Feb. 24, 2016, he used his computer to post images of child pornography to a website.  Wittwer further admitted that he possessed a tablet device and cellphone that contained more than 600 images and videos of child pornography. 

The conviction carries a mandatory minimum sentence of five years in federal prison, and a maximum of 20 years.  Judge Lee set sentencing for July 27, 2022, at 1:30 p.m.  

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations.  Valuable assistance was provided by the South Beloit Police Department and the Winnebago County Sheriff’s Office.  The government is represented by Assistant U.S. Attorney Michael D. Love.

CHICAGO — Former City of Chicago Alderman RICARDO MUNOZ was sentenced today to 13 months in federal prison for using money from a political fund to pay personal expenses.

While serving as Alderman of the 22nd Ward in Chicago, Munoz used money from a political action committee formed by the Chicago Progressive Reform Caucus (CPRC) to pay a relative’s college tuition and other personal expenses, including jewelry, clothing, cell phones, vacations, sports tickets, and airline travel.  Public officials were prohibited by law from misappropriating funds from the CPRC for personal expenditures.  Munoz attempted to conceal the fraud scheme by making materially false representations to the Illinois State Board of Elections and staff members and contractors of the CPRC. 

Munoz, 57, of Chicago, pleaded guilty last year to federal wire fraud and money laundering charges.  U.S. District Judge John F. Kness imposed the prison sentence after a hearing in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government was represented by Assistant U.S. Attorneys Morris Pasqual and Jared Hasten.

CHICAGO — A police officer in Harvey, Ill., threatened to interfere with local towing companies’ ability to compete for city work unless they paid him cash and other benefits, according to a federal indictment.

From 2011 to 2019, DERRICK MUHAMMAD served as a Harvey Police Officer and oversaw the Harvey Police Department’s Traffic Division.  The role provided Muhammad with the authority to assign City of Harvey towing work to private towing companies.  An indictment returned Wednesday in U.S. District Court in Chicago alleges that Muhammad conspired with a relative to obtain cash, cars, and other benefits from the towing companies on the understanding that, absent such payment, Muhammad would interfere with the ability of the companies to compete for City of Harvey towing work.

The indictment charges Muhammad, also known as “Rick,” 73, of South Holland, Ill., with conspiracy, extortion, and bribery.  The indictment seeks forfeiture from Muhammad of approximately $100,000.  Arraignment in federal court in Chicago has not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Brandon Gardner, Acting Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago.  The government is represented by Assistant U.S. Attorney Sean J.B. Franzblau.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

The conspiracy and extortion charges are each punishable by a maximum sentence of 20 years in federal prison, while the bribery charge is punishable by up to ten years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

ROCKFORD — A federal inmate at Thomson Penitentiary in Thompson, Ill., was convicted Tuesday for the assault of a federal correctional officer. 

JOSEPH VAN SACH, 49, was found guilty following a seven-day jury trial in federal court in Rockford. According to evidence at trial, Van Sach on April 2, 2019, forcibly assaulted the officer while he was engaged in the performance of his official duties.  Van Sach made physical contact and inflicted bodily injury to the officer.

Van Sach faces a maximum sentence of 20 years in federal prison, a maximum fine of up to $250,000, and restitution to the victim.  U.S. District Judge John Robert Blakey did not immediately set a sentencing date.

The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorneys Jessica S. Maveus and Vincenza L. Tomlinson.

CHICAGO — An ongoing federal investigation into an alleged procurement fraud scheme at a Chicago elementary school has resulted in charges against a sales representative for a Chicago Public Schools vendor.

An indictment returned Monday in U.S. District Court in Chicago alleges that DEBRA M. BANNACK schemed with the Principal and Business Manager of Brennemann Elementary School on the North Side of Chicago to submit false purchase orders to CPS for school materials that Bannack’s company would purportedly supply.  In reality, Bannack’s company provided iPhones, iPads, and pre-paid gift cards to the Principal, Business Manager, and others at the school, for their personal use, the indictment alleges.  As a result of the scheme, Bannack and the CPS employees fraudulently misappropriated approximately $75,000 in CPS funds to which they were not entitled, the indictment states.

Bannack, 62, of Schaumburg, Ill., is charged with three counts of wire fraud and one count of mail fraud.  Each of the counts is punishable by up to 20 years in federal prison.  Arraignment in federal court in Chicago has not yet been scheduled.

The Principal – SARAH JACKSON ABEDELAL, of Chicago – and the Business Manager – WILLIAM JACKSON, of Chicago – were previously charged with participating in the fraud scheme.  Abedelal and Jackson have pleaded not guilty and are awaiting trial.

The Bannack indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Will Fletcher, Inspector General of the Chicago Board of Education, Office of Inspector General.  The government is represented by Assistant U.S. Attorneys Terry M. Kinney and Patrick Mott.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.